Applied Industrial Technologies Inc (AIT) 2024 Q3 法說會逐字稿

Welcome to the fiscal 2024 third quarter earnings call for Applied Industrial Technologies.

歡迎參加應用工業技術公司 2024 財年第三季財報電話會議。

My name is Shayan, and I'll be your operator for today's call.

我叫 Shayan，我是今天電話的接線生。

(Operator Instructions) Please note that this conference is being recorded.

（操作員說明）請注意，本次會議正在錄製中。

I will now turn the call over to Ryan Cieslak, Director of Investor Relations and Treasury.

我現在將把電話轉給投資者關係和財務總監 Ryan Cieslak。

Ryan, you may begin.

瑞安，你可以開始了。

Thanks, Shayan.

謝謝，沙彥。

Good morning to everyone on the call this morning, we issued our earnings release and supplemental investor deck detailing our third quarter results.

今天早上參加電話會議的每個人都早上好，我們發布了收益報告和補充投資者資料，詳細介紹了我們的第三季業績。

Both of these documents are available in the Investor Relations section of applied.com. Before we begin, just a reminder, we'll discuss our business outlook and make forward-looking statements.

這兩份文件均可在 Applied.com 的投資者關係部分取得。在開始之前，謹提醒您，我們將討論我們的業務前景並做出前瞻性陳述。

All forward-looking statements are based on current expectations, subject to certain risks and uncertainties, including those detailed in our SEC filings and actual results may differ materially from those expressed in the forward-looking statements.

所有前瞻性陳述均基於當前預期，並受到某些風險和不確定性的影響，包括我們向SEC 文件中詳細說明的風險和不確定性，實際結果可能與前瞻性陳述中表達的結果有重大差異。

The company undertakes no obligation to update publicly or revise any forward-looking statement.

該公司不承擔公開更新或修改任何前瞻性聲明的義務。

In addition, the conference call will use non-GAAP GAAP financial measures, which are subject to the qualifications referenced in those documents.

此外，電話會議將使用非公認會計原則（non-GAAP）公認會計原則（GAAP）財務衡量標準，這些衡量標準須遵守這些文件中引用的資格。

Our speakers today include Neil Schrimsher, Applied's President and Chief Executive Officer; and Dave Wells, our Chief Financial Officer.

今天的演講者包括應用材料公司總裁兼執行長 Neil Schrimsher；以及我們的財務長戴夫威爾斯 (Dave Wells)。

For that, I'll turn it over to Neil.

為此，我將把它交給尼爾。

Thanks, Ryan, and good morning, everyone.

謝謝瑞安，大家早安。

We appreciate you joining us.

我們感謝您加入我們。

As usual, I'll begin with some perspective and highlights on the key drivers of our results, including an update on industry conditions as well as expectations going forward.

像往常一樣，我將從一些觀點和重點介紹我們業績的關鍵驅動因素，包括行業狀況的最新情況以及未來的預期。

Dave will follow with more detail on the quarter's financials and provide additional color on our outlook and guidance, and then I'll close with some final thoughts.

戴夫將詳細介紹本季度的財務狀況，並對我們的前景和指導提供更多信息，然後我將提出一些最終想法。

Overall, our third quarter results reflect our strong industry position and ongoing progress with our internal growth initiatives against a mixed and evolving market backdrop, there are a couple of puts and takes.

總體而言，我們第三季的業績反映了我們強大的行業地位以及在複雜且不斷變化的市場背景下我們內部成長計劃的持續進展，有一些看法和看法。

I want to walk through.

我想走過去。

First sales exceeded our expectations during the quarter and return to modest year-over-year organic growth year over year.

本季首次銷售超出了我們的預期，並恢復了同比溫和的有機成長。

Trend improved each month through the quarter, while partially reflecting easy comparisons reported sales also benefited from solid performance across our core service center segments for steady break-fix activity, sales process initiatives and secular growth tailwinds continue to drive positive momentum.

整個季度每個月的趨勢都在改善，同時部分反映了簡單比較報告的銷售也受益於我們核心服務中心部門的穩健表現，穩定的故障修復活動、銷售流程舉措和長期增長順風繼續推動積極勢頭。

This was partially offset by ongoing modest sales declines within our Engineered Solutions segment.

這被我們的工程解決方案部門持續的小幅銷售下滑所部分抵消。

While the decline was slightly greater than expected, we are seeing several encouraging developments, including stabilizing technology, vertical headwinds, strengthening process flow cold orders.

雖然降幅略大於預期，但我們看到了一些令人鼓舞的發展，包括穩定技術、垂直逆風、加強製程流程冷訂單。

In addition, our automation platform is also developing significant growth opportunities that we expect to start billing in the quarters ahead.

此外，我們的自動化平台也正在開發重大的成長機會，我們預計將在未來幾季開始計費。

All of this indicates that fiscal third quarter '24 will represent a trough in the segment's year-over-year sales performance, combined with improving short-cycle macro demand in indicators in recent months and potential incremental tailwinds tied to infrastructure spending, reshoring and our cross-selling efforts, we are positioning the business to accelerate organic growth in coming quarters and progress towards our long-term growth objectives.

所有這些都表明，24財年第三季將代表該部門同比銷售業績的低谷，再加上近幾個月指標中短週期宏觀需求的改善以及與基礎設施支出、回流和我們的業務相關的潛在增量推動因素。

This growth positioning and the modest sales growth backdrop near term resulted in some expense deleveraging during the quarter.

這種成長定位和近期適度的銷售成長背景導致本季出現了一定程度的費用去槓桿化。

Our Applied team continues to execute and control cost effectively as reflected in operating expense up less than 2% year to date.

我們的應用材料團隊繼續有效執行和控製成本，今年迄今的營運費用增幅不到 2%。

This is inclusive of slightly higher support costs and our annual merit increase that went into effect January 1 and despite some prior year expense favorability.

這包括略高的支援成本和 1 月 1 日生效的年度績效成長，儘管去年有一些費用優惠。

In addition, we remain on track to achieve record cash generation this year, which will provide additional capacity for capital deployment opportunities.

此外，我們今年仍有望實現創紀錄的現金生成，這將為資本部署機會提供額外的能力。

Our priorities remain unchanged with a primary focus on optimizing growth and operating capabilities through both organic investments and inorganic acquisitions.

我們的優先事項保持不變，主要專注於透過有機投資和無機收購優化成長和營運能力。

Secondarily, we look to return cash to our shareholders through opportunistic share buybacks while continuing to support consistent annual increases in our ordinary dividend and managing our balance sheet commitments.

其次，我們希望透過機會性股票回購向股東返還現金，同時繼續支持普通股利的年度持續成長並管理我們的資產負債表承諾。

Over the past five years, we've deployed over $900 million in capital towards these areas.

過去五年來，我們已向這些領域投入了超過 9 億美元的資金。

As it relates to acquisitions, we have significant potential based on active pipeline and our industry positions.

就收購而言，基於活躍的管道和我們的行業地位，我們具有巨大的潛力。

We remain focused on our return framework and opportunities that stand to enhance our organic growth margin profile and competitive position long term, considering the fragmented markets we compete in as well as increasing technical and operating requirements across our industry.

考慮到我們競爭的分散市場以及整個行業不斷增加的技術和營運要求，我們仍然專注於我們的回報框架和機會，這些機會有助於提高我們的有機成長利潤率和長期競爭地位。

We believe M&A activity could increase over the next several years.

我們相信未來幾年併購活動可能會增加。

On that note, as indicated in our press release this morning, I'm pleased to announce a definitive agreement to acquire Grupo Copart, a provider of emerging Automation Technologies and Engineered Solutions, primarily across Mexico.

在這一點上，正如我們今天早上的新聞稿中所指出的，我很高興宣布達成一項收購 Grupo Copart 的最終協議，Grupo Copart 是一家主要在墨西哥提供新興自動化技術和工程解決方案的提供者。

This acquisition will extend our automation footprint with the addition of 16 locations across Mexico as well as Costa Rica and Texas.

此次收購將擴大我們的自動化足跡，在墨西哥、哥斯達黎加和德克薩斯州增加 16 個地點。

Cohbar has strong alignment with our strategy focused on high-value robotics, machine vision and IoT applications, and they will provide a diverse portfolio of established customers across food and beverage, automotive, light manufacturing, electronics and pharmaceutical end markets.

Cohbar 與我們專注於高價值機器人、機器視覺和物聯網應用的策略高度一致，他們將為食品和飲料、汽車、輕工業製造、電子和製藥終端市場的成熟客戶提供多樣化的產品組合。

The acquisition will add approximately 200 new associates and is expected to generate annual sales over $60 million in the first year with accretive contributions to both gross margins and EBITDA margins.

此次收購將增加約 200 名新員工，預計第一年的年銷售額將超過 6,000 萬美元，並對毛利率和 EBITDA 利潤率做出貢獻。

We expect the acquisition to close in the coming weeks, and we look forward to welcoming Copart to Applied and leveraging their capabilities going forward.

我們預計收購將在未來幾週內完成，我們期待 Copart 加入 Applied 並在未來利用他們的能力。

As it relates to the underlying demand environment, overall dynamics remain mixed, but generally stable demand within our core technical MRO operations has been resilient, including solid demand across our U.S. service center and flow control operations, where sales increased organically by mid to high single digit percent during the quarter, including strong activity during the month of March.

由於與潛在的需求環境相關，整體動態仍然喜憂參半，但我們的核心技術 MRO 業務中總體穩定的需求一直具有彈性，包括我們美國服務中心和流量控制業務的強勁需求，其中銷售額以中高單有機增長本季的數字百分比，包括3 月的強勁活動。

We believe steady capacity utilization and heightened technical MRO requirements on critical production infrastructure remain key tailwinds.

我們認為，穩定的產能利用率和對關鍵生產基礎設施更高的技術 MRO 要求仍然是關鍵的推動因素。

This has been further supported by an increased focus on energy efficiency and service coverage.

對能源效率和服務覆蓋範圍的日益關注進一步支持了這一點。

That said, end market dynamics within these MRO areas of our business are bifurcated to some degree.

也就是說，我們業務的這些 MRO 領域內的終端市場動態在某種程度上是分歧的。

In addition, demand remains more muted across the OEM channel, including reduced shipment activity for OffHighway, mobile fluid power components and systems.

此外，整個 OEM 通路的需求仍然更加疲軟，包括 OffHighway、行動流體動力組件和系統的出貨活動減少。

Within our Engineered Solutions segment.

在我們的工程解決方案部門。

We believe this partially reflects ongoing recalibrate recalibration across various mobile end markets as supply chain stabilize and higher interest rates balanced more capital-intensive machinery production.

我們認為，這在一定程度上反映了隨著供應鏈穩定且更高的利率平衡資本密集型機械生產，各個行動終端市場正在進行的重新調整。

As such, we saw slightly more mixed trends out of our top 30 in markets during the quarter, where 15 generated positive growth year over year compared to 18 last quarter.

因此，我們在本季的前 30 個市場中看到了稍微複雜的趨勢，其中 15 個市場較去年同期出現正成長，而上季有 18 個市場。

Growth was most favorable across food and beverage, primary metals, utilities, mining, lumber and wood verticals during the quarter offset by declines such as machinery, energy, pulp and paper and fabricated metals.

本季食品和飲料、初級金屬、公用事業、採礦、木材和木材垂直行業的成長最為有利，但被機械、能源、紙漿和造紙以及金屬製品等行業的下滑所抵消。

As it relates to the solid performance within our Service Center segment, we continued to see strong growth across larger national accounts and fluid power aftermarket sales.

由於這與我們服務中心部門的穩健業績有關，我們繼續看到更大的國民帳戶和流體動力售後市場銷售的強勁增長。

We also began to see some improving growth out of our local customer accounts during the quarter, partially reflecting demand for our conveyance and shop services.

本季我們也開始看到本地客戶帳戶的成長有所改善，部分反映了對我們的運輸和商店服務的需求。

In general, technical break-fix break-fix activity remains resilient across many of our key service center markets.

總體而言，我們許多主要服務中心市場的技術故障修復活動仍然具有彈性。

We believe our service center customers remain focused on sustaining appropriate MRO activity on core equipment as they position and refresh production capacity for growth in years to come, especially when considering aged industrial production assets across the U.S. and an increase in focus on energy efficiencies.

我們相信，我們的服務中心客戶在定位和更新產能以實現未來幾年的成長時，仍然專注於在核心設備上維持適當的MRO 活動，特別是考慮到美國各地老化的工業生產資產以及對能源效率的日益關注。

Our technical domain expertise and access to Core Industrial Equipment puts us in a leading position to help customers manage through these operational requirements, particularly as they struggle with finding skilled labor.

我們的技術領域專業知識和對核心工業設備的存取使我們處於領先地位，可以幫助客戶管理這些營運要求，特別是當他們努力尋找熟練勞動力時。

In addition, our sales initiatives continue to drive new growth opportunities.

此外，我們的銷售舉措持續帶來新的成長機會。

We're leveraging technology investments to streamline processes and digitally enhanced capabilities and business intelligence.

我們正在利用技術投資來簡化流程並以數位方式增強功能和商業智慧。

Our service center teams are going to market today as key consultants to our customers' most important capital equipment, making our relationships and interactions increasingly strategic and less transactional.

今天，我們的服務中心團隊將作為客戶最重要資本設備的關鍵顧問進入市場，使我們的關係和互動更具策略性，減少交易性。

This is driving increased account penetration and account openings as well as expanding opportunities to cross-sell our technical solutions, including new industrial technologies tied to robotics and IoT.

這推動了帳戶滲透率和帳戶開設的增加，並擴大了交叉銷售我們的技術解決方案的機會，包括與機器人和物聯網相關的新工業技術。

Overall, our service center team is executing at a high level and remains in a strong growth position moving forward within a within our Engineered Solutions segment, MRO activity and capital spending on process infrastructure remains positive across our flow control operations.

總體而言，我們的服務中心團隊正在高水準執行，並在我們的工程解決方案領域內保持強勁的成長地位，MRO 活動和流程基礎設施的資本支出在我們的流程控制業務中仍然保持積極的勢頭。

Consistent with prior quarters, flow control is benefiting from new business tied to customers' decarbonization and energy transition efforts.

與前幾季一致，流量控制受益於與客戶脫碳和能源轉型工作相關的新業務。

This includes technical support for the configuration, assembly and testing of process systems used in carbon capture utilization and storage as well as producing alternative fuel sources.

這包括為碳捕獲利用和儲存以及生產替代燃料來源的製程系統的配置、組裝和測試提供技術支援。

Combined with internal business development and solid sales execution, we saw Flow Control booking activity gained momentum during the third quarter with related orders up by a high teen percent, both year-over-year and sequentially.

結合內部業務發展和紮實的銷售執行，我們看到 Flow Control 預訂活動在第三季度取得了強勁勢頭，相關訂單同比和環比均增長了十幾%。

In addition, demand and order activity for stationary fluid power systems across industrial focused end markets remains relatively firm.

此外，以工業為重點的終端市場對固定式流體動力系統的需求和訂單活動仍然相對強勁。

We believe this partially reflects the many positive secular tailwinds across the U.S. manufacturing base, including investments focused on updating and expanding industrial production infrastructure and aging manufacturing equipment.

我們認為，這部分反映了美國製造業基地的許多積極的長期推動因素，包括專注於更新和擴大工業生產基礎設施和老化製造設備的投資。

This includes enhancing efficiency and life cycle of hydraulic systems and power units, filtration systems and hydraulic presses and is reflected in positive fluid power sales growth within metals mining and rubber industries during the quarter.

這包括提高液壓系統和動力裝置、過濾系統和液壓機的效率和生命週期，並反映在本季度金屬採礦和橡膠行業流體動力銷售的積極成長中。

That said, these trends were more than offset by reduced activity for OffHighway mobile OEM components and systems within Fluid Power and to a lesser degree ongoing organic sales declines within our automation operations.

也就是說，這些趨勢被流體動力領域 OffHighway 行動 OEM 組件和系統活動的減少以及我們自動化業務中持續的有機銷售下降（較小程度上）所抵消。

As expected, we believe the lower number of operating days and holiday timing in March had some impact on the completion and timing of engineered solutions and these more technical and assembly heavy areas of our business.

正如預期的那樣，我們認為 3 月份營業天數和假期時間的減少對工程解決方案以及我們業務中技術和裝配較多的領域的完成和時間安排產生了一些影響。

Nonetheless, underlying demand and backlog conversion from mobile OE and Fluid Power customers was mixed in the quarter, partially reflecting more balanced production activity across various machinery end markets.

儘管如此，本季行動原配設備和流體動力客戶的潛在需求和積壓訂單轉換情況參差不齊，部分反映了各個機械終端市場的生產活動更加平衡。

Overall, while the sales backdrop within our Engineered Solutions segment remains bifurcated near term, we are constructive on the segment's potential into fiscal 2025 of note, the year-over-year headwind tied to technology vertical has stabilized and could emerge as a positive growth catalyst in coming quarters as comparisons continue to ease and demand within this key end market recovers.

總體而言，雖然我們的工程解決方案部門的銷售背景在短期內仍然存在分歧，但我們對該部門到2025 財年的潛力持建設性態度，值得注意的是，與垂直技術相關的同比逆風已經穩定下來，並可能成為積極的成長催化劑在未來幾個季度，隨著比較繼續緩解以及這一關鍵終端市場的需求復甦。

Early leading indicators have been directionally positive across the semiconductor space in recent months.

近幾個月來，整個半導體領域的早期領先指標一直呈現正面方向。

In addition, we are favorably positioned to benefit from the ongoing secular growth across datacenter infrastructure, including providing various fluid conveyance Flow Control and robotic solutions for server cooling, material handling and technical maintenance.

此外，我們處於有利地位，可以從資料中心基礎設施的持續長期成長中受益，包括為伺服器冷卻、材料處理和技術維護提供各種流體輸送流量控制和機器人解決方案。

We also note that customer interest in our automation operations remains positive.

我們也注意到，客戶對我們的自動化營運仍然抱持著積極的興趣。

With our sales funnel and presales engineering activity remaining active.

我們的銷售管道和售前工程活動仍然活躍。

We have meaningful growth opportunities developing in automation, given the scale, service and engineering capabilities we are developing around advanced technology such as smart vision and mobile robots as well as the market access our service center network provides, combined with the building order activity, cross Flow Control and easing comparisons we look forward to seeing a rebound in segment growth in coming quarters.

鑑於我們圍繞著智慧視覺和移動機器人等先進技術開發的規模、服務和工程能力，以及我們的服務中心網路提供的市場准入，再加上建築訂單活動，我們在自動化領域擁有有意義的成長機會。流量控制和寬鬆比較我們期待在未來幾季看到該細分市場成長的反彈。

At this time, I'll turn the call over to Dave for additional detail on our financial results and outlook.

此時，我會將電話轉給戴夫，以了解更多有關我們財務業績和前景的詳細資訊。

Thanks, Neil.

謝謝，尼爾。

Just a reminder, before I begin, as in prior quarters, we have posted a quarterly supplemental investor presentation to our Investor site.

提醒一下，在我開始之前，與前幾季一樣，我們已在投資者網站上發布了季度補充投資者簡報。

This is for your additional reference as we recap our most recent quarter performance and updated guidance.

當我們回顧我們最近一個季度的業績和更新的指導時，這供您額外參考。

Turning now to details on our financial performance in the quarter, consolidated sales increased 1.3% over the prior year quarter acquisitions contributed 120 basis points, and foreign currency translation had a positive 20 basis points impact, while the difference in selling days had a negative 80 basis points impact leading these factors, sales increased 0.7% year-over-year on an organic daily basis and approximately 16% on a two-year stack basis.

現在詳細介紹我們本季的財務業績，綜合銷售額比去年同期增長1.3%，收購貢獻了120 個基點，外幣換算產生了20 個基點的正影響，而銷售天數差異則產生了80 個基點的負影響在這些因素的主導下，銷售額以日有機率年增 0.7%，按兩年累計成長約 16%。

As it relates to pricing, we estimate the contribution of product pricing and year-over-year sales growth was in the low single digits for the quarter and relatively unchanged from last quarter.

由於與定價相關，我們估計本季產品定價和年比銷售成長的貢獻處於較低的個位數，與上季相比相對不變。

Turning now to sales performance by segment.

現在轉向按細分市場劃分的銷售業績。

As highlighted on slides 7 and 8 of the presentation.

正如簡報第 7 和第 8 投影片中所強調的。

Sales in our Services segment increased 2.6% year over year on an organic daily basis when excluding a 1.5% positive impact from acquisitions and the 30 basis points positive impact from foreign currency translation.

排除收購帶來的 1.5% 的正面影響和外幣換算帶來的 30 個基點的正面影響，我們服務部門的銷售額按日有機率同比增長 2.6%。

On a sequential basis, segment sales per day increased 4% for fiscal second quarter only slightly below normal seasonal patterns and an improvement from relative trends in recent quarters.

從環比來看，第二財季的細分市場每日銷售額成長了 4%，僅略低於正常的季節性模式，且較最近幾季的相對趨勢有所改善。

Growth in the quarter was strongest across our U.S. service center network led by solid contributions from strategic accounts as well as improving growth among local accounts.

本季我們美國服務中心網路的成長最為強勁，這得益於策略客戶的強勁貢獻以及本地客戶成長的改善。

This was partially offset by more muted sales trends across our international operations.

這被我們國際業務的銷售趨勢更加疲軟所部分抵銷。

Within our Engineered Solutions segment, sales decreased 3.6% over the prior year quarter.

在我們的工程解決方案部門，銷售額比去年同期下降了 3.6%。

This includes a positive 40 basis points of growth from acquisitions on organic daily basis, accounting for one less selling day in this year's quarter.

其中包括每日有機收購帶來 40 個基點的正成長，導致今年季度銷售日減少 1 個。

Segment sales decreased 3.2% year over year.

分部銷售額較去年同期下降3.2%。

Stronger growth across process flow control markets was more than offset by lower fluid power sales against a difficult prior-year comparison.

整個製程流量控制市場的強勁成長被流體動力銷售額的下降（與前一年相比）所抵消。

As well as ongoing sales declines within our automation operations.

我們的自動化業務的銷售額持續下降。

That said, both Fluid Power and Automation sales were unchanged sequentially and as mentioned earlier, were likely adversely impacted by more muted system shipments due to the calendar shift and holiday timing during March.

儘管如此，流體動力和自動化銷售均環比保持不變，如前所述，由於 3 月份的日曆轉換和假期時間，系統出貨量可能會減少，從而受到不利影響。

In addition, contribution from the technology vertical remained subdued during the quarter, so the year-over-year headwind abated relative to recent quarters reflecting easier comparisons and demand stabilization.

此外，本季技術垂直領域的貢獻仍然疲軟，因此與最近幾季相比，年比逆風減弱，反映出比較更容易和需求穩定。

Moving to gross margin performance, as highlighted on page 9 of the deck, gross margin of 29.5% decreased eight basis points compared to the prior year level of 29.4%.

至於毛利率表現，正如該報告第 9 頁所強調的那樣，毛利率為 29.5%，與上一年 29.4% 的水平相比下降了 8 個基點。

During the quarter, we recognized LIFO expense of $4.8 million compared to $8.2 million in the prior year quarter.

本季度，我們確認後進先出費用為 480 萬美元，去年同期為 820 萬美元。

This net micro tailwind had a favorable 30 basis points year-over-year impact on gross margins.

這個淨微利因素對毛利率產生了同比 30 個基點的有利影響。

Third quarter LIFO expense was, however, up sequentially and slightly higher than our expectations in addition, we estimate gross margins in the quarter included approximately 10 basis points of unfavorable mix compared to prior year levels.

然而，第三季後進先出費用環比上升，略高於我們的預期。

This primarily reflects lower Engineered Solutions segment sales as well as strong national account sales growth and a lesser mix of automation engineered solutions compared to the prior year.

這主要反映了工程解決方案部門銷售額的下降以及國民帳戶銷售成長的強勁以及與前一年相比自動化工程解決方案的組合較少。

Overall, we continue to manage broader inflationary dynamics well through our ongoing initiatives including enhanced analytics, freight expense management and channel execution.

整體而言，我們持續透過增強分析、運費管理和管道執行等持續舉措，以很好地管理更廣泛的通膨動態。

As it relates to our operating costs, selling, distribution and administrative expenses increased 5.3% compared to prior-year levels.

由於與我們的營運成本相關，銷售、分銷和管理費用與去年同期相比增加了 5.3%。

SD&A expense was 18.9% of sales during the quarter, up from 18.2% during the prior year quarter.

SD&A 費用佔本季銷售額的 18.9%，高於去年同期的 18.2%。

On an organic constant currency basis, SD&A expense was up approximately 3% over the prior year period.

以有機固定貨幣計算，SD&A 費用比去年同期成長約 3%。

We saw slightly greater than expected expense deleverage in the quarter given muted sales growth combined with higher employee costs, professional fees and investments tied to growth and supporting our constructive outlook.

鑑於銷售成長乏力，加上員工成本、專業費用和與成長相關的投資增加，並支持我們的建設性前景，我們看到本季的費用去槓桿化略高於預期。

In addition, year-over-year SD&A expense comparisons were impacted by some cost favorability in the prior year period relating to strong AR collection performance and related provisioning reversals.

此外，與去年同期相比，SD&A 費用比較受到上一年期間與強勁的應收帳款收集績效和相關撥備沖銷相關的一些成本優惠的影響。

We continue to manage costs well as we balanced expense controls against our growth initiatives and outlook as well as face ongoing inflationary pressures overall, slightly greater than expected.

我們持續妥善管理成本，平衡支出控制與成長計畫和前景，並面臨整體持續的通膨壓力，略高於預期。

And new solutions.

以及新的解決方案。

Sales declines, combined with unfavorable expense absorption mix and difficult prior-year comparisons resulted in reported EBITDA declining 3.3% year over year during the quarter, while EBITDA margin of 11.8% decreased 56 basis points year over year.

銷售額下降，加上不利的費用吸收組合和困難的上年比較，導致本季度報告的 EBITDA 同比下降 3.3%，而 EBITDA 利潤率為 11.8%，比去年同期下降 56 個基點。

We view the year-over-year declines in EBITDA and EBITDA margin as a transitory near-term dynamic and largely isolated to the third quarter, particularly when considering prior year comparisons.

我們認為 EBITDA 和 EBITDA 利潤率的同比下降是暫時的近期動態，並且很大程度上與第三季度無關，特別是在考慮與上年比較時。

On a year-to-date basis, we note EBITDA has increased 4% compared to a 2% sales increase, while EBITDA margins are up approximately 20 basis points year to date.

年初至今，我們注意到 EBITDA 成長了 4%，而銷售額增幅為 2%，而 EBITDA 利潤率年初至今成長了約 20 個基點。

We also continue to reflect benefit from lower net interest expense, which was down nearly $5 million from the prior year and primarily reflects reduced debt levels and greater interest income from higher cash balances and investment yields, combined with a lower tax rate relative to prior year levels, reported earnings per share of $2.48 was up 4% from prior year adjusted EPS levels.

我們也繼續反映淨利息支出下降帶來的好處，淨利息支出比上年減少了近500 萬美元，主要反映了債務水準的降低以及現金餘額和投資收益率增加帶來的利息收入增加，以及相對在去年較低的稅率水準上，報告的每股收益為 2.48 美元，比上年調整後每股收益水準成長 4%。

Moving to our cash flow performance.

轉向我們的現金流表現。

Cash generated from operating activities during the third quarter was $84.2 million, while free cash flow totaled $76.7 million or 79% of net income and was up 14% from the prior year level year to date we have generated nearly $235 million of free cash, which is up 64% from the prior year, reflecting sustained earnings growth.

第三季經營活動產生的現金為8,420 萬美元，而自由現金流總計7,670 萬美元，佔淨利潤的79%，比上年水準成長14%。 ，其中較上年增長 64%，反映出獲利持續成長。

Our enhanced margin profile and ongoing progress on working capital initiatives.

我們提高了利潤率，並在營運資本計畫方面持續取得進展。

From a balance sheet perspective, we ended March with approximately $457 million of cash on hand and net leverage at 0.3 times EBITDA, which is below the prior year level of 0.9 times and unchanged from last quarter.

從資產負債表的角度來看，截至 3 月份，我們手頭現金約為 4.57 億美元，淨槓桿率為 EBITDA 的 0.3 倍，低於去年同期的 0.9 倍，與上季持平。

Our balance sheet is in a solid position to support our capital deployment initiatives moving forward as well as enhance returns for all stakeholders.

我們的資產負債表處於穩固的地位，可以支持我們向前推進的資本部署計劃，並提高所有利害關係人的回報。

During the third quarter, we repurchased approximately 100,000 shares for $18 million.

第三季度，我們以 1800 萬美元回購了約 10 萬股股票。

This brings our year to date total on share repurchases to $29 million.

這使得我們今年迄今的股票回購總額達到 2,900 萬美元。

Turning now to our outlook.

現在轉向我們的展望。

As indicated in today's press release and detailed on page 12 of our presentation, we are updating full year fiscal 2024 guidance to reflect third quarter performance and our fourth quarter expectations.

正如今天的新聞稿和簡報第 12 頁所述，我們正在更新 2024 財年全年指引，以反映第三季的業績和我們第四季的預期。

Specifically, we now project adjusted EPS in the range of $9.55 to $9.70 based on sales growth of 1.5% to 2.5%, including a 0.5% to 1.5% organic growth assumption as well as EBITDA margins up 12% to 12.1%.

具體來說，我們現在預計，基於1.5% 至2.5% 的銷售成長，包括0.5% 至1.5% 的有機成長假設以及EBITDA 利潤率成長12% 至12.1%，調整後每股盈餘將在9.55 美元至9.70美元之間。

Previously, our guidance assumed EPS of $9.35 to $9.70, sales growth of 1% to 3%, and EBITDA margins of 12.1% to 12.3%.

先前，我們的指導假設每股收益為 9.35 美元至 9.70 美元，銷售額增長 1% 至 3%，EBITDA 利潤率為 12.1% 至 12.3%。

The updated adjusted EPS guidance range excludes the $3 million net tax benefit realized in fiscal 2024 second quarter related to the tax valuation allowance adjustments.

更新後的調整後每股收益指引範圍不包括 2024 財年第二季與稅收估價補貼調整相關的 300 萬美元淨稅收優惠。

Our updated guidance implies a fiscal fourth quarter EPS range of $2.44 to $2.59 and an organic sales per day range of down one to up 2% year over year, and EBITDA margins up 12% to 12.4%.

我們更新的指導意味著第四財季每股收益範圍為 2.44 美元至 2.59 美元，每日有機銷售額同比下降 1% 至上升 2%，EBITDA 利潤率增長 12% 至 12.4%。

Our fourth quarter sales guidance takes into consideration organic sales month-to-date in April, which are down by a low single digit percent year over year, combined with ongoing economic uncertainty.

我們的第四季銷售指引考慮了 4 月迄今的有機銷售額，該銷售額同比下降了較低的個位數百分比，再加上持續的經濟不確定性。

In addition, we expect year-over-year sales declines to persist in our Engineered Solutions segment during the fourth quarter, reflecting softer Fluid Power OEM demand and uncertainty around the timing and magnitude of recovery across the technology vertical.

此外，我們預計第四季度工程解決方案部門的銷售額將持續下降，反映出流體動力 OEM 需求疲軟以及整個技術垂直領域復甦時間和幅度的不確定性。

Overall, while we remain constructive on our setup moving forward, considering easier prior-year comparisons, favorable trends within our shorter-cycle service center operations and sustained benefits from our internal initiatives.

總體而言，雖然我們對未來的設置保持建設性的態度，但考慮到與往年相比更容易、我們較短週期服務中心運營的有利趨勢以及我們內部計劃的持續效益。

We believe it remains prudent to take a balanced approach to our near term outlook pending more definitive and broader signs of a positive inflection in macro and industry conditions.

我們認為，在宏觀和行業狀況出現更明確和更廣泛的積極變化跡象之前，對我們的近期前景採取平衡的態度仍然是謹慎的。

Lastly, from a margin perspective, we expect quarter gross margins to be flat to up slightly sequentially, inclusive of ongoing mix headwinds near term, we also expect ongoing expense deleveraging near term based on our fourth quarter sales outlook and growth positioning.

最後，從利潤率的角度來看，我們預計季度毛利率將持平或比上一季度略有上升，包括近期持續的混合阻力，我們還預計根據我們第四季度的銷售前景和增長定位，近期將持續進行費用去槓桿化。

So to a lesser degree than in the third quarter and balanced by cost controls and reduced professional fees combined with lower LIFO expense compared to the prior year and easier comparisons, we expect year-over-year EBITDA trends to show improvement from third quarter performance.

因此，與第三季度相比，程度較輕，並透過成本控制和減少的專業費用以及與上一年相比較低的後進先出費用和更容易的比較相平衡，我們預計同比EBITDA 趨勢將顯示出較第三季業績有所改善。

With that, I'll now turn the call back over to Neil for some final comments.

現在，我將把電話轉回給尼爾，徵求一些最終意見。

Thanks, Dave.

謝謝，戴夫。

As we prepare to close out fiscal 2024.

當我們準備結束 2024 財年。

I'm proud of the ongoing progress we're making to strengthen our industry position, customer experience and growth potential.

我為我們在加強行業地位、客戶體驗和成長潛力方面不斷取得的進展感到自豪。

This is evident in our year-to-date performance where we have sustained year-over-year organic sales growth against difficult high-teen growth comparisons during a period of sub-50 PMI readings declines in industrial production and notable technology vertical headwinds.

這在我們今年迄今為止的業績中顯而易見，在工業生產 PMI 讀數低於 50 且技術垂直阻力顯著的時期，我們保持了同比有機銷售增長，而與困難的高青少年增長比較相比。

We've also expanded margins and sustained earnings growth year to date, while strengthening our cash generation to record levels.

年初至今，我們也擴大了利潤率，實現了持續的獲利成長，同時將我們的現金產生能力提高到了創紀錄的水平。

These results clearly show the traction of our strategy and internal initiatives are having including diversifying our end-market mix, gaining exposure to sustainable noncyclical growth tailwinds and enhancing our operational capabilities.

這些結果清楚地表明了我們的策略和內部舉措的吸引力，包括使我們的終端市場組合多元化、獲得可持續的非週期性成長動力以及增強我們的營運能力。

As we look ahead to fiscal 2025, I remain constructive on the outlook for our company and the potential for sustained above-market sales and earnings growth.

在展望 2025 財年時，我對公司的前景以及持續高於市場的銷售和獲利成長的潛力仍然持建設性態度。

While we are cognizant of various cross currents that remain, we are encouraged by recent improvements in various industrial macro indicators that correlate with our business.

雖然我們意識到仍然存在各種不利因素，但與我們業務相關的各種工業宏觀指標最近的改善令我們感到鼓舞。

This includes the ISM PMI above 50 during March, including the production sub index at its highest level in nearly two years.

其中包括3月ISM PMI高於50，其中生產分類指數處於近兩年來的最高水準。

In addition, durable goods orders are showing improvement and federal stimulus for infrastructure buildout is starting to flow at a greater rate.

此外，耐久財訂單正在改善，聯邦政府對基礎建設的刺激措施開始以更大的速度流動。

And we're also uniquely positioned to benefit from many secular and structural tailwinds continuing to play out across North American manufacturing and industrial sectors.

我們也處於獨特的地位，可以從北美製造業和工業部門持續發揮的許多長期和結構性順風中受益。

Our technical domain expertise within industrial facilities across North America, including local MRO and engineering support on critical capital equipment is increasingly vital as customers managed through an aging skilled labor force, along with continuing requirements tied to reshoring and U.S. infrastructure investments, both of which are expected to gain momentum moving forward.

我們在北美工業設施中的技術領域專業知識（包括本地MRO 和關鍵資本設備的工程支援）變得越來越重要，因為客戶透過老化的熟練勞動力進行管理，以及與回流和美國​​基礎設施投資相關的持續要求，這兩者都是預計將獲得前進的動力。

We see additional support levels from energy, security and supply chain hardening.

我們看到能源、安全和供應鏈強化提供了額外的支持。

In addition, our strategic positioning and capabilities in areas of pneumatic automation, fluid conveyance and robotics have expanded our addressable market and organic growth profile across the technology sector, which we believe could reemerge as a meaningful earnings tailwind given ongoing and critical build-out of semiconductor manufacturing and data center infrastructure, combined with our balance sheet capacity.

此外，我們在氣動自動化、流體輸送和機器人領域的策略性定位和能力擴大了我們在整個技術領域的潛在市場和有機成長概況，我們相信，鑑於持續和關鍵的建設，這可能會重新成為有意義的獲利推動力。

We expect to make ongoing progress in fiscal 2025 to move towards our intermediate objectives of $5.5 billion in sales and 13% EBITDA margins, while also developing the next step and Applied's evolution and long-term potential.

我們預計在 2025 財年取得持續進展，實現 55 億美元銷售額和 13% EBITDA 利潤率的中期目標，同時制定下一步計劃以及應用材料公司的發展和長期潛力。

I want to recognize our entire Applied team so the foundation of our performance and evolution, their perseverance and customer focus and operational focus provide a strong position to accelerate our potential moving forward.

我想表彰我們整個應用團隊，因此我們的業績和發展的基礎、他們的毅力、以客戶為中心和以營運為中心，為加速我們的潛力向前發展提供了強有力的地位。

As always, we thank you for your continued support.

一如既往，我們感謝您的持續支持。

And with that, we'll open up the lines for your questions.

至此，我們將開放您的提問專線。

(Operator Instructions) David Manthey, Baird.

（操作員說明）David Manthey，Baird。

And good morning, everyone.

大家早安。

First question is on your positioning the company for accelerating growth in the coming fiscal year.

第一個問題是關於您對公司在下一財年加速成長的定位。

Could you just talk a little about the type of investments that include and then, of course, some well everyone has a plan until they get punched in the face.

您能否簡單談談其中包括的投資類型，然後，當然，每個人都有一個計劃，直到他們被打在臉上。

And obviously, if things don't materialize as expected, how can you adjust the posture of that, that growth would that you're leaning into if things don't materialize as planned, if at all, maybe some of those things you just waited out, but if you could give us an idea of the of the plan here for the coming fiscal year?

顯然，如果事情沒有按預期實現，你如何調整你所傾向於的增長姿態，如果事情沒有按計劃實現，如果有的話，也許你只是做一些事情等待了，但是您能否告訴我們下一財年的計劃？

I'd appreciate it.

我會很感激。

Yes, David, I'd say it's still a little early as we think about the fiscal '25.

是的，大衛，我想說，現在考慮 25 財年還為時過早。

Obviously, we're working through it and we'll talk more specific on it.

顯然，我們正在解決這個問題，我們將對此進行更具體的討論。

I detail some of the team in my view.

我詳細介紹了我對團隊的一些看法。

This is almost the most wonderful time of the year, right?

這幾乎是一年中最美好的時光，對吧？

We work to close a a fourth quarter.

我們努力結束第四季。

We build long-range three year plans plus our next year's operating plan.

我們制定長期三年計劃以及明年的營運計劃。

So where we're active, we're active into it.

因此，只要我們活躍，我們就會積極參與。

I think on the preparing the company for growth.

我認為是為公司的發展做好準備。

I think we've been doing that as we look at our position around technical MRO and our service centers position there and the benefits that we have for ongoing secular trends from reshoring and heightened investment in our customers dealing with probably low CapEx in that industrial capacity for a period of time.

我認為我們一直在這樣做，因為我們審視了我們在技術MRO 方面的地位和我們在那裡的服務中心的地位，以及我們從回流和增加對客戶的投資（處理該工業能力中資本支出可能較低的情況）中對持續長期趨勢的好處。

And in this aging technical workforce.

而在這支老化的技術隊伍中。

So stay well positioned there.

所以要在那裡保持良好的位置。

And then the trends that we see around infrastructure and technology and how we've diversified the company and engineered solutions.

然後是我們在基礎設施和技術方面看到的趨勢，以及我們如何實現公司多元化和設計解決方案。

And so even now, right we absorb some Off-highway mobile headwind with that diversification that we've had around Flow Control, the industrial side of fluid power and now even more on even more on automation.

因此，即使是現在，我們也透過流量控制、流體動力的工業方面以及現在更多的自動化方面的多元化來吸收一些非公路移動逆風。

So I think specifically in the quarter as we saw a little bit of that volume softening late in late in March.

因此，我認為特別是在本季度，因為我們在三月下旬看到銷量略有減弱。

We knew in that with some of the holiday timing, the businesses around off-highway, mobile and certain degree automation, a little labor-intensive of building out those solutions either on our part or customers accepting.

我們知道，在一些假期時間裡，圍繞著非公路、移動和一定程度的自動化的業務，無論是我們還是客戶接受的，建立這些解決方案都需要一些勞動力密集的工作。

And so I think that played into a little bit as a result in that period.

所以我認為這在那個時期起到了一點作用。

But our view is obviously, we're staying committed to having the right technical resources in both sales, engineering and application engineering to convert these projects and I like the work that we have in emerging areas, including things like electrification in that.

但我們的觀點顯然是，我們將繼續致力於在銷售、工程和應用工程方面擁有正確的技術資源來轉換這些項目，我喜歡我們在新興領域所做的工作，包括電氣化等領域。

And so those will be the investments that will continue if some of this doesn't materialize or the environment changes.

因此，如果其中一些目標未能實現或環境發生變化，這些投資將繼續進行。

Obviously, we've got natural shock absorbers in the business as we think about our cost position in that there's lower volumes of things and commissions and incentives adjust freight adjust.

顯然，我們在業務中擁有天然的減震器，因為我們考慮到我們的成本狀況，因為貨物數量減少，佣金和激勵措施調整運費調整。

So there's those natural shock absorbers.

所以就有了那些天然的避震器。

And then if it's beyond that, I think obviously, we've demonstrated that cost accountability and have the history that we'll respond accordingly.

如果超出這個範圍，我認為顯然，我們已經證明了成本責任，並且擁有我們將做出相應反應的歷史。

But if I look out, I don't think that's the environment that we're preparing for.

但如果我仔細觀察，我認為這不是我們正在準備的環境。

Obviously, we know how, but I am constructive on the outlook that we have lower performance and really some continued outperformance as we turn into '25.

顯然，我們知道如何做，但我對前景持建設性態度，即我們的業績會下降，而且在進入 25 年後，我們的業績確實會持續出色。

I'd just tag on there, David, is in add that the largest investment was more transitory in nature.

大衛，我想補充一點，最大的投資本質上是暫時的。

And again, if you look back obviously to the last couple of years and especially during the COVID downturn, we continued to make investments in the business while leveraging some of those shock absorbers that you indicated and some of the benefit from our systems investments, shared services, process improvement, et cetera.

再說一次，如果你回顧過去幾年，特別是在新冠疫情低迷期間，我們繼續對業務進行投資，同時利用你指出的一些減震器以及我們的系統投資帶來的一些好處，分享服務、流程改進等。

So if I strip apart the SD&A for you pulling out the impact of currency the M&A kind of cost.

因此，如果我將 SD&A 剝離出來，你就會排除貨幣對併購成本的影響。

That's been that on a year-by-year basis and they are provisioning.

這是逐年進行的，他們正在進行配置。

That was an unusual prior year benefit that we call it out up of only 1.2% operationally year over years.

這是去年的一個不同尋常的效益，我們稱其與多年來的營運效益相比僅增長了 1.2%。

And I look at the UK, the impact of staffing, only 30 basis points of that was really driven by higher staffing costs.

我看看英國，人員配置的影響，其中只有 30 個基點真正是由更高的人員成本驅動的。

The merit impact, et cetera.

功德影響等等。

And some of the investments that we've made in personnel resource, a lot of these investments will be more transitory in terms of supporting the Copano acquisition, the legal work that went on behind that.

我們在人力資源方面進行的一些投資，其中許多投資在支持 Copano 收購以及背後進行的法律工作方面將更加短暫。

Some of the automation greenfield activity we have going on, as well as some expansion that we have ongoing with both the Olympus to support some of the automation opportunities we see going forward as well as some expansion of facility in the tech side at the Fluid Power business, thinking about what's coming out there with the particularly the semi space.

我們正在進行的一些自動化綠地活動，以及我們與奧林巴斯正在進行的一些擴張，以支持我們未來看到的一些自動化機會，以及流體動力技術方面的一些設施擴張業務，思考特別是半空間的發展。

So it just give some further clarification on some of those investments and how we see some of this.

因此，它只是對其中一些投資以及我們如何看待其中一些進行了進一步澄清。

You normalize into the big degree in terms of the deleveraging in Q4.

就第四季的去槓桿化而言，您可以將其標準化為較大程度。

Yes.

是的。

Thanks for the detail.

謝謝你的詳細資料。

You guys are clearly well positioned and you've historically been very nimble as it relates to changing economic landscape.

你們顯然處於有利地位，而且在應對不斷變化的經濟格局方面，你們歷來都非常靈活。

So just another quick one on this Grupo Copart.

這是關於 Grupo Copart 的另一篇快速文章。

And if you pro forma this fiscal year, say, fiscal '24 for that acquisition, assuming it goes through, what would be the revenue run rate and at that point.

如果您預期本財年（例如 24 財年）的收購，假設收購成功，那麼此時的營收運作率是多少。

And then second, I'm assuming that Copart works with these maquiladora as there are some or many of the customers that they deal with domicile, there have US operations that becomes a cross-sell opportunity for you now.

其次，我假設 Copart 與這些加工廠合作，因為他們有一些或許多客戶與他們的住所打交道，美國的業務現在成為您的交叉銷售機會。

So I can start a based on the footprint and the capabilities that they would be more than just Makela DOORS, strong presence in the interior and throughout Mexico.

因此，我可以根據足跡和能力開始一項計劃，他們將不僅僅是 Makela DOORS，在內陸和整個墨西哥都有強大的影響力。

Obviously, we're encouraged that we think about the amount of foreign direct investment going into Mexico and many people are looking at it as a additional place to do business as supply chains more regionalized or localized US North America perspective.

顯然，我們對進入墨西哥的外國直接投資數量感到鼓舞，許多人將其視為一個額外的開展業務的地方，因為供應鏈更加區域化或本地化的美國北美視角。

So we view that as very encouraging.

所以我們覺得這非常令人鼓舞。

There will be some opportunity for cross-selling and further customer cooperation in U.S. and Mexico, but also we have a very strong position in Mexico on our service center side of our business today and operates.

在美國和墨西哥將有一些交叉銷售和進一步客戶合作的機會，而且我們在墨西哥的服務中心方面也擁有非常強大的地位，我們今天的業務和運營。

And we think about bearings and power transmission and fluid power in time that will open up some of those opportunities.

我們及時考慮軸承、動力傳輸和流體動力，這將帶來一些機會。

And I think about it from an annualized basis on sales, right, we touched on it around the $60 million of sales and basing on the time it closed, we can look at calendar rising.

我從年化銷售額的角度來考慮這個問題，對吧，我們在 6000 萬美元的銷售額左右觸及了它，並且根據它關閉的時間，我們可以看到日曆上升。

That's a first pass and be pretty orderly from a rate standpoint.

這是第一次通過，從速率的角度來看是相當有序的。

All right.

好的。

That all sounds great.

這一切聽起來都很棒。

Thanks a lot, guys.

非常感謝，夥計們。

Thank you.

謝謝。

Thanks, Dave.

謝謝，戴夫。

Christopher Glynn from Oppenheimer.

奧本海默的克里斯托弗·格林。

Thanks.

謝謝。

Good morning.

早安.

I wanted to ask about the tenant you're seeing from the smaller customer base.

我想詢問一下您從較小的客戶群中看到的租戶的情況。

One concern we've had is the kind of lag effect of rates and inflation on the less resourceful a portion of the industrial economy.

我們擔心的一個問題是利率和通貨膨脹對工業經濟中資源匱乏的部分的滯後效應。

So I'm wondering if you've seen any particularly interesting insights into that smaller customer base?

所以我想知道您是否對較小的客戶群有任何特別有趣的見解？

I'd say specifically as it relates to that, we saw positive developments that helped contribute to the overall service center performance on that.

我要特別說的是，與此相關的是，我們看到了積極的發展，有助於提高服務中心的整體績效。

We're also seeing that customer segment look, two more things for us to do and help them with.

我們也看到客戶群的情況，我們還有兩件事要做並幫助他們。

Obviously, they too can be a challenge with a workforce, aging technical workforce in that.

顯然，對於勞動力、老化的技術勞動力來說，它們也可能是一個挑戰。

And so just like large customers have been looking at that and outsourcing some of those requirements we're seeing local customers expand.

因此，就像大客戶一直在關注這一點並將其中一些需求外包一樣，我們也看到本地客戶正在擴大。

So we remain encouraged.

所以我們仍然受到鼓舞。

I think we touched on our overall market all in all, still a good productive environment with 15 of them up slight decline from the prior quarter at 18.

我認為我們總體上觸及了整個市場，仍然是一個良好的生產環境，其中 15 個比上一季的 18 個略有下降。

But those local customers participating, especially in those vertical segments, are active in doing well.

但參與其中的本地客戶，尤其是那些垂直領域的客戶，表現積極，表現良好。

And I think local customers are getting pulled into and benefiting from ongoing reshoring because I think some of these larger customers and these global customers are either pulling to work internal or they're finding qualified localized suppliers to help them with.

我認為本地客戶正在被持續的回流所吸引並從中受益，因為我認為其中一些較大的客戶和這些全球客戶要么在內部工作，要么正在尋找合格的本地化供應商來幫助他們。

And I think that's been an additive lift for some in the local economy.

我認為這對當地經濟的某些方面起到了額外的推動作用。

Thank you for that.

謝謝你。

And I wanted to follow up on the linearity.

我想跟進線性度。

I think said things improved throughout the month.

我認為整個月情況有所改善。

Than April was low single digits.

較四月呈低個位數。

I think that has a favorable Easter timing in that comparison.

我認為在比較中復活節的時機是有利的。

So just curious how to kind of plug that into our thought process on our fourth quarter guide with April seeming a little less constructive toward that, but right now they are good.

所以只是好奇如何將其融入我們第四季度指南的思考過程中，四月似乎對此沒有那麼有建設性，但現在它們很好。

The good question.

這個問題問得好。

You know, clearly March was good across the service center network a little bit of normalizing in there, but still positive trends.

你知道，很明顯，三月整個服務中心網絡都很好，有一點正常化，但仍然是積極的趨勢。

If I think about April from a comparable standpoint, it does step up a little bit little tougher comparison.

如果我從可比較的角度來考慮四月，它確實會變得更加嚴格一些。

I think by it may be a couple of hundred basis points there in the side.

我認為這可能有幾百個基點。

And and so still a few days to go in that April side.

距離四月的日子還有幾天。

So I don't read too much into it.

所以我沒有過度解讀它。

But obviously, we want to be prudent and have the right balance as we look ahead at some of these cross currents and as we prepare for them fiscal '25 and the opportunities that we see ahead.

但顯然，當我們展望其中一些交叉潮流並為 25 財年的發展和我們看到的未來​​機會做準備時，我們希望保持謹慎並保持適當的平衡。

Yes.

是的。

Thank you.

謝謝。

Ken Newman with KeyBanc Capital Markets.

KeyBanc 資本市場的 Ken Newman。

Morning.

早晨。

I'm just curious, did you talk through the implied 4Q ADS growth guide?

我只是好奇，您是否討論了隱含的第四季度 ADS 成長指南？

And obviously the midpoint is assuming a sequential step down from the 70 basis points up you put up this quarter, but the comp next quarter looks like it's stepping down again and is much easier.

顯然，中點是假設從本季上漲 70 個基點開始連續下降，但下個季度的比較看起來會再次下降，而且要容易得多。

Any color on whether the guide is really just conservatism?

對於該指南是否真的只是保守主義有什麼看法嗎？

Or is it just taking a more prudent approach to what you're seeing so far in April?

或者只是對四月份迄今為止所看到的情況採取了更謹慎的態度？

Any color to help us think about and your expectations for the sequence of ATS growth as we move throughout the year?

有什麼顏色可以幫助我們思考以及您對全年 ATS 成長順序的期望嗎？

Sorry, Yvette here again goes.

抱歉，伊薇特又來了。

And so break guide does assume a continuation of the trends that we saw and no real recovery out of the tech or the or the Fluid Power OEM. space so that I could just cover some of the market uncertainty.

因此，突破指南確實假設我們所看到的趨勢會延續，並且技術或流體動力 OEM 沒有真正復甦。空間，以便我可以涵蓋一些市場的不確定性。

We said we we wanted to be prudent as we think about the guide.

我們說過，我們在考慮該指南時要保持謹慎。

So the Q4 once again, that would imply organic sales growth in the updated guidance of you overall 1% to 4% up on organic basis, you're down potentially 1% to an up to.

因此，第四季度再次意味著，在更新的指導中，有機銷售成長總體上有機增長 1% 到 4%，但可能會下降 1% 到最多。

So at the midpoint, that would assume some slight further deterioration in the overall markets.

因此，在中期，這將假設整體市場進一步略有惡化。

And so we'll work to offset that.

因此，我們將努力抵消這一影響。

Obviously, with, you know, the the key push on some of the debt maturities and the stronger booking trends that we are seeing in that engineered solutions base where for the first time in about seven quarters, we did see kind of a one to one book-to-bill ratio.

顯然，你知道，我們在工程解決方案基礎上看到了一些債務到期的關鍵推動力和更強勁的預訂趨勢，在大約七個季度以來，我們第一次確實看到了一對一的合作訂單出貨比。

So that was encouraging as we've seen some of those order trends come back, which have continued to supplement some of that news longer Flow Control, you know, kind of like that, high single digit growth that we saw there in the most recent quarter.

So that was encouraging as we've seen some of those order trends come back, which have continued to supplement some of that news longer Flow Control, you know, kind of like that, high single digit growth that we saw there in the most recent四分之一.

So that's how I'd frame it up a good continuation of the same that we saw this quarter with the just the further uncertainty and as a potential further market contraction centered around that midpoint at the Galleria.

因此，這就是我如何將其視為本季度我們所看到的良好延續，只是存在進一步的不確定性，並且潛在的市場進一步收縮集中在商業街廊的中點附近。

Adds a further into Canada.

進一步進入加拿大。

We look at the detail, we think that service centers and that could be flat to up low single digit, but while the Engineered Solutions segment perhaps down to low single digit as we take it forward.

我們著眼於細節，我們認為服務中心可能會持平到低個位數，但隨著我們的推進，工程解決方案部分可能會下降到低個位數。

So there's sequential improvement at the midpoint, but probably slightly less maybe 100 basis points below that normal seasonal pattern.

因此，中點出現連續改善，但可能比正常季節性模式略低 100 個基點。

I understand.

我明白。

That's very helpful for my second question, just going back to Cobar, I think this may be one of the first deals that you've made really focused on the Mexican market.

這對我的第二個問題非常有幫助，回到科巴，我認為這可能是你們真正專注於墨西哥市場的第一批交易之一。

I'm just curious how large of an opportunity is Mexico for you?

我只是好奇墨西哥對你來說有多大的機會？

And should we think about this dealer view it as a modest shift for and are focusing more on the international market rather than the US Noth American market.

我們是否應該認為經銷商認為這是一個適度的轉變，並且更專注於國際市場而不是美國和北美市場。

But it all started saying, hey, one, we're a bit excited about the addition.

但這一切都開始說，嘿，一，我們對這個新增功能有點興奮。

We see a lot of alignment from a strategy standpoint.

從策略的角度來看，我們看到了很多一致性。

I mean, we have a common approach in thinking about vision and robotics in linear motion and connectivity.

我的意思是，我們在思考線性運動和連接方面的視覺和機器人技術方面有一個共同的方法。

And we've teams have known one another for an extended period of time now.

我們的團隊已經互相認識很久了。

And so we see a lot of growth opportunity in back to the earlier the the economy in Mexico, the amount of foreign direct investment coming in.

因此，我們看到墨西哥經濟早期的成長機會以及外國直接投資的流入量。

So we think that is very positive.

所以我們認為這是非常積極的。

We've said for a while.

我們已經說了有一段時間了。

Our focus clearly remains on our U.S. opportunities in US North America and that in time right.

我們的重點顯然仍然是我們在美國北美的美國機會以及及時的機會。

We'd like to add to our capabilities outside of the US in North America with automation and some of the other engineered solutions areas.

我們希望透過自動化和其他一些工程解決方案領域來增強我們在美國以外的北美地區的能力。

So it's a logical extension that we still will remain to have a clear view of the US North America focus because market back at where we see significant opportunities here.

因此，這是一個合乎邏輯的延伸，我們仍然會對美國北美市場的重點保持清晰的看法，因為市場回到了我們在這裡看到重大機會的地方。

Maybe if I could just squeeze one more in here on the automation business specifically, where does that run in revenue today?

也許如果我可以在自動化業務上再加一個，那麼今天的收入在哪裡？

Do you have a sense of when sales there starts to bottom out?

您是否知道那裡的銷售何時開始觸底？

We think they probably salesforce could be would be similar in the fourth quarter.

我們認為第四季的銷售人員可能會類似。

And so in this last quarter, we were mid digit decline in that side.

因此，在最後一個季度，我們在這方面出現了中位數下降。

If I look at and pre order or order activity, what ourselves engineers are involved with projects that our application engineers are working with.

如果我查看預購或訂購活動，我們自己的工程師參與了我們的應用工程師正在處理的專案。

So the cooperation, the opportunities that our service centers are opening up on that side, we think as we go into fiscal '25.

因此，當我們進入 25 財年時，我們認為我們的服務中心在這方面開放的合作和機會。

There's a return to growth in that segment that we look down below in some of those product groups.

我們在下面的一些產品組中看到了該細分市場的成長恢復。

We think there's going to be more and more mobile robotics opportunity in that side.

我們認為這方面將會有越來越多的移動機器人機會。

So I think that's what we would expect going forward as we entered the fiscal year, it play out a run rate of a couple of hundred million dollars with automation.

因此，我認為這就是我們在進入本財年時所期望的，它通過自動化實現了數億美元的運行率。

Obviously, as we progress forward and move towards closure with Copart, we'll add to that $60 million of sales or so in that side so we continue to scale this business.

顯然，隨著我們的進展並接近與 Copart 的關閉，我們將在這方面增加 6000 萬美元左右的銷售額，以便我們繼續擴大這項業務。

We'll look for opportunities to organically grow with greenfield in a couple of geographies.

我們將在幾個地區尋找與綠地有機成長的機會。

And so we'll also look at perhaps right acquisition opportunities to further build out that footprint and platform.

因此，我們也將尋找合適的收購機會，以進一步擴大足跡和平台。

But we're encouraged by it.

但我們對此感到鼓舞。

And as we are with the amount of automation that exist in some of our other parts of engineered solutions, right now because there's elements of that that reside in now fluid power, but also our flow control as well.

正如我們在工程解決方案的其他一些部分中存在的自動化程度一樣，現在因為其中的元素存在於現在的流體動力中，也存在於我們的流量控制中。

It is provided Kate, and we did say on the prepared remarks, that the sequentially automation shipments were really small Q2.

據凱特透露，我們確實在準備好的評論中說過，第二季的連續自動化出貨量確實很小。

So it feels like we've seen seen that trough as IDO did see stronger order intake that you've got one to one parity obviously with the as we talked about with the shipments in the quarter.

因此，感覺我們已經看到了這個低谷，因為 IDO 確實看到了更強的訂單量，顯然與我們談到的本季出貨量是一對一的平價。

So that was a positive sign.

所以這是一個正面的訊號。

So hopefully, we've seen that trough and we do see some improvement given some of the the booking rates and the project quotation activity that we're still enjoying right now.

因此，希望我們已經看到了這個低谷，並考慮到我們目前仍在享受的一些預訂率和項目報價活動，我們確實看到了一些改善。

Right, thanks.

好的，謝謝。

Chris Dankert with Loop Capital.

Loop Capital 的 Chris Dankert。

Hey, morning, guys.

嘿，早上好，夥計們。

Thanks for taking the question.

感謝您提出問題。

I guess just first off, Doug, obviously not a principally backlog-driven business, but is backlog still kind of two times what the normal level is in Engineered Solutions?

我想首先，道格，顯然不是一個主要由積壓驅動的業務，但積壓仍然是工程解決方案中正常水平的兩倍嗎？

And if so, is there any kind of bottleneck still slowing down some of those shipments from moving forward here?

如果是這樣，是否存在任何瓶頸仍然阻礙其中一些貨物在這裡繼續前進？

It is good so I would say, yes, it's still running at that.

這很好，所以我會說，是的，它仍在運行。

We think about a pre pandemic levels of two times normalized backlog.

我們認為大流行前的積壓水準是正常化的兩倍。

So that is encouraging at this point, pockets that some things can be held up by some component or assembly or where the solution fits in the overall project with the customer in that in that side.

因此，在這一點上，這是令人鼓舞的，有些東西可以由某些組件或組件來支撐，或者解決方案適合與客戶所在的整個專案。

So there could be some of that, but we view the of the backlog at its level of constructive way we touched on and then the remarks of Flow Control added to it in that side.

所以可能會有一些這樣的情況，但我們從我們提到的建設性方式的層面來看積壓的情況，然後在這一側添加了流程控制的評論。

So we think there's a productive base to operate from.

所以我們認為有一個可以運作的生產基地。

And we would think that orderly works its way out as we look forward, especially as we go into '25.

我們認為，隨著我們的展望，特別是當我們進入 25 世紀時，有序的工作將會得到解決。

Got it.

知道了。

Got it.

知道了。

Makes sense.

說得通。

And then just anything to write home about in terms of the Northwest facility expansion, any update on the facility there?

然後，關於西北設施擴建，有什麼值得寫的嗎？

Continue to make good progress in that side, we'll move to a beneficial occupancy soon into that.

繼續在這方面取得良好進展，我們很快就會在這方面取得有利的進展。

And so we're encouraged by that progress as well.

因此，我們也對這項進展感到鼓舞。

As Dave mentioned, one other that we have and the in the fluid power space as well.

正如戴夫所提到的，我們擁有的另一種產品以及流體動力領域的產品。

So they're good projects.

所以它們是好項目。

They take a little bit of time, effort, focus and attention, appreciate the resources that are working on it.

他們花費一點時間、精力、注意力和注意力，欣賞正在努力的資源。

Some of that expense creeps in to the results into the quarter.

其中一些費用會滲透到本季的業績中。

But we think those are very much investments to be making in the automation and the technology and the support semiconductor build-out overall.

但我們認為，這些是在自動化、技術以及支援半導體整體建設方面的大量投資。

So good good progress and perhaps we'll look forward to showing it to a few in the in the coming periods.

如此良好的進展，也許我們會期待在接下來的時期向一些人展示它。

Exciting developments for sure.

肯定會有令人興奮的發展。

Well, thank you, Carlos, and the good luck finishing out the year here.

好吧，謝謝你，卡洛斯，祝你在這裡度過這一年好運。

Okay.

好的。

Aaron Reid, Northcoast Research.

亞倫·里德，北海岸研究中心。

Great.

偉大的。

Thanks for taking my question.

感謝您提出我的問題。

Just taking a step back and look a little bit broader here.

只是退後一步，把目光放得更廣闊一些。

Can you speak on really what you're seeing in terms of on the inflation front?

您能談談您在通貨膨脹方面所看到的真實情況嗎？

I know some of your competitors are seeing it come down quite a bit.

我知道你們的一些競爭對手看到它的價格大幅下降。

What is your experience and kind of what are you seeing right now?

您的經驗是什麼？

Yes, I would say I mean, we will have continued expectations for inflation and so if I look at obviously down from the pandemic driven type inflationary periods.

是的，我想說的是，我們將對通膨抱持持續的預期，因此，如果我看一下大流行驅動型通膨時期明顯下降的情況。

But if I look at prior to that, the the number of increases are similar rate suppliers are getting orderly on that, but the rate of the increase is higher.

但如果我之前看的話，增加的數量與供應商的有序程度相似，但增加的速度更高。

And I think perhaps that could translate roughly 100 basis points more with the rate of the increase in the side.

我認為，隨著側面的成長率，這可能會增加大約 100 個基點。

And I can contain there's going to be continued inflation into the business looking forward, while material inputs may soften or abate to a degree, the labor side of that has not as the general G&A type expenses and medical and some other things have not in those fronts.

我可以控制未來業務將持續通貨膨脹，雖然物質投入可能會在一定程度上軟化或減少，但勞動力方面的情況並沒有像一般管理費用和醫療費用以及其他一些事情那樣戰線。

So from our side, we continue to see supplier increases.

因此，從我們的角度來看，我們繼續看到供應商的增加。

The pace is a bit more normalized in that perhaps the amount of increase slightly higher than they've been by historical standards.

步伐更加正常化，因為增長量可能略高於歷史標準。

Which still reentered the subsidy tie our Weibo expense that we talked about in the quarter, a little bit higher than expectations.

這仍然重新進入了我們在本季談到的微博支出的補貼，略高於預期。

So we've historically here, again, kind of nice steady inflation like this.

因此，從歷史上看，我們再次經歷過這樣的穩定通膨。

The very good for industrial distributors have demonstrated the capability of taking that passionate on.

對工業分銷商來說非常好的事情已經證明了他們有能力承擔這種熱情。

This is minor, but it does not necessarily always come in the form of price.

這是次要的，但它並不一定總是以價格的形式出現。

There are some offsets to the degree that we have strategic or large national accounts where we've got some contractual pricing.

我們擁有策略或大型國民帳戶，在某種程度上我們有一些合約定價，因此存在一些抵消。

Our key suppliers will work with us to absorb those price increases for the interim and make us whole so that we're not seeing that.

我們的主要供應商將與我們合作，吸收臨時價格上漲的影響，使我們變得完整，這樣我們就不會看到這種情況。

So don't necessarily read through as a one to one to price.

因此，不一定要一對一地通讀價格。

But certainly, yes, you indicated see that steady inflation continue, which overall is positive for the business.

但當然，是的，您表示看到穩定的通膨仍在繼續，這總體上對企業有利。

Okay, great.

好的，太好了。

Thank you.

謝謝。

Thank you.

謝謝。

At this time, I'm showing we have no further questions.

此時，我表明我們沒有其他問題了。

I will now turn the call over to Mr. Schrimsher for any closing remarks.

我現在將把電話轉交給施里姆舍先生，請他發表結束語。

I just want to thank everyone for joining us today, and we look forward to talking with you throughout the quarter.

我只想感謝大家今天加入我們，我們期待在整個季度與您交談。

Thanks.

謝謝。

Thank you.

謝謝。

Ladies and gentlemen, this concludes today's conference.

女士們、先生們，今天的會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。